• Suits business use

  • Loan terms generally 1 - 5 years

  • Ownership of the item is with customer

  • Lender takes security of the item until the loan is paid off

  • Secured basis

A Chattel Mortgage is a commercial finance product where the customer takes ownership of the vehicle at the time of purchase.

Under a Chattel Mortgage the financier advances funds to the customer to purchase a vehicle. The customer then takes ownership of the vehicle at the time of purchase. The financier takes an interest over the vehicle as security for the loan. Once the loan is paid off the lender no longer has an interest in the vehicle.


Benefits Include

  • Loan terms generally 12 to 60 months 

  • A balloon or residual value can be used to keep repayments within budget

  • Monthly repayments are fixed (interest rate is fixed)

  • Deposit (either cash or trade-in) may be used, often no deposit is required

  • A tax deduction is available when the vehicle is used for business purposes

  • GST on the item can be claimed back via BAS if you are registered for GST and it is used for business purposes

  • No GST is charged on the monthly repayment or the contract balloon amount


A Chattel Mortgage is suitable for business entities & sole traders when the item to be purchased is for business use. 

GST, depreciation & interest on the loan can be claimed if the item is used for business purposes. Check with your accountant to determine if the product is right for you. 

Credit Guide Available on request